Perspectives of tax reforms in Croatia: expert opinion survey

Hrvoje Šimović, University of Zagreb, Faculty of Economics and Business, Zagreb, CroatiaHelena Blažić, University of Rijeka, Faculty of Economics, Rijeka, CroatiaAna Štambuk, University of Rijeka, Faculty of Economics, Rijeka, Croatia

AbstractIn order to shape tax reform it is necessary objectively to assess the current stateof-the-art of and of the outlook for the tax system. After having reviewed all previous reforms in the light of the consumption-based (interest-adjusted) concept of direct taxation, which was almost systematically implemented in Croatia in 1994, we present the results of a broad expert opinion survey about the Croatian tax system. The most interesting results suggest the maintenance/(re)introduction of different tax incentives and reduced VAT rates, rejection of a flat tax as well as decrease of tax brackets, an increase in alcohol and tobacco duties, the introduction of a financial activities tax, a further shift from income to consumption, a decrease of the tax share in GDP and a belief in the behavioral responsiveness of tax decreases/exemptions, as well as a firm commitment to the principle of equity. The last three economic views/values are important predictors of other tax attitudes.